Oracle (NYSE:ORCL) Stock Price Down 4% – Here’s Why

Shares of Oracle Corporation (NYSE:ORCL) fell 4% on Monday . The company traded as low as $120.03 and last traded at $121.38. 36,300,666 shares traded hands during trading, an increase of 25% from the average daily volume of 29,155,357 shares. The stock had previously closed at $126.41.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Neutral Sentiment: Oracle continues to win attention for its AI and cloud buildout, including a new partnership with IMSA Labs to launch a cloud and AI studio, which supports its long-term growth narrative. Oracle (ORCL) Partners With IMSA Labs To Launch Cloud And AI Studio
• Neutral Sentiment: Some articles argue the stock may already reflect much of the bad news, pointing to Oracle’s large $638 billion backlog and asking whether the selloff has gone too far. Oracle Crashed 65% From Its Peak. I Just Bought It Anyway.
• Neutral Sentiment: Oracle also received mixed analyst and media attention around its AI infrastructure plans, with some noting the company’s cloud capacity expansion and others questioning the sustainability of its spending. Oracle stock falls 3% to 52-week low: what’s ailing the company?
• Negative Sentiment: Oracle stock is under pressure after CLSA initiated coverage with a Hold rating and warned the company could need up to $500 billion to fund its AI cloud expansion through 2030, raising concerns that internal cash generation may cover only a fraction of that amount. Oracle stock falls 3% to 52-week low: what’s ailing the company?
• Negative Sentiment: Investors are also reacting to Oracle’s recent credit downgrade toward junk territory and broader fears that the company’s debt-funded AI strategy could create execution and balance-sheet risks. Oracle Just Hit a Fresh 52-Week Low and Had Its Credit Cut Toward Junk. Has the AI-Capex Panic Overshot?

Wall Street Analysts Forecast Growth

ORCL has been the subject of several recent research reports. BMO Capital Markets increased their price objective on shares of Oracle from $200.00 to $220.00 and gave the company an “outperform” rating in a research report on Thursday, June 11th. Wedbush cut their price objective on Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a research note on Thursday, June 11th. Morgan Stanley restated a “mixed” rating on shares of Oracle in a research report on Thursday, June 11th. Guggenheim reissued a “buy” rating and issued a $400.00 price target on shares of Oracle in a report on Thursday, June 11th. Finally, Piper Sandler lifted their price objective on shares of Oracle from $210.00 to $225.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $265.03.

Oracle Stock Performance

The firm has a fifty day moving average price of $177.30 and a 200 day moving average price of $169.28. The firm has a market capitalization of $349.63 billion, a PE ratio of 20.82, a P/E/G ratio of 0.79 and a beta of 1.72. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15. The business had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.Oracle’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.70 earnings per share. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Research analysts anticipate that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, July 10th. Oracle’s payout ratio is presently 34.31%.

Insider Transactions at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the sale, the insider owned 400,000 shares in the company, valued at $63,664,000. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Oracle

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. FSA Wealth Management LLC acquired a new stake in shares of Oracle during the third quarter worth approximately $28,000. Mpwm Advisory Solutions LLC boosted its holdings in shares of Oracle by 76.9% in the 3rd quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock worth $32,000 after acquiring an additional 50 shares in the last quarter. Turning Point Benefit Group Inc. acquired a new position in shares of Oracle in the 3rd quarter worth approximately $35,000. HFM Investment Advisors LLC grew its position in Oracle by 290.9% during the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after acquiring an additional 96 shares during the last quarter. Finally, Basepoint Wealth LLC bought a new stake in Oracle during the 4th quarter worth approximately $26,000. 42.44% of the stock is currently owned by institutional investors.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.